Use the Information for the Question(s)below

question 20

Multiple Choice

Use the information for the question(s) below.
As an oil refiner,you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil.Because of its lower sulfur content,you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
-Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil.Assuming you just purchased 10,000 Bbls of WTI crude at the current market price,the total benefit (cost) to you if you take the trade is closest to:

• A)$730,600
• B)$770,000
• C)$771,400
• D)$773,908
• E)$775,000

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Definitions:

Incorporate Ideas

The process of taking suggestions, concepts, or viewpoints and integrating them into a project or plan.

Benchmarking

Benchmarking involves assessing a company's procedures and performance measures by contrasting them with the best in the sector or exemplary practices of various corporations.

Internal Comparisons

The process of evaluating a company’s performance, projects, or individuals against internal standards or past records.

Middle Managers

Employees who manage the activities of other managers or teams and are responsible for implementing the organization's strategies.